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AC 420 Unit 2 Assignment
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Tamra Corp. makes one product line. In February 2013, Tamra paid
$530,000 in factory overhead costs. Of that amount, $124,000 was for
January’s factory utilities and $48,000 was for property taxes on the
factory for the year 2013.
February’s factory utility bill arrived on March 12, 2013, and was
only $81,000 because the weather was significantly milder than in
January. Tamra Corp. produced
50,000 units of product in both January and February 2013,
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